The value of plant and machinery is a fact question — and in the UAE it is asked by auditors, banks, insurers, liquidators and now the FTA. CPCON values machinery and equipment across Dubai, Abu Dhabi and the wider Emirates: production lines, construction fleets, medical technology, data centre infrastructure, hotel back-of-house plant and entire facilities. Valuations are prepared to the RICS Red Book (RICS Valuation — Global Standards) with IFRS-aligned bases of value, by valuers who physically inspect what they sign.
Purposes we value for
- Financial reporting (IFRS). Fair value measurements under IFRS 13, revaluation and componentisation under IAS 16, impairment testing inputs under IAS 36, and right-of-use asset questions under IFRS 16 — see our UAE leases guide.
- Insurance. Reinstatement cost and indemnity values so policies neither underinsure the plant nor overpay premium — with the schedule tied to tagged, verifiable assets.
- Secured lending. Market value and forced-sale opinions banks can lend against, with the asset schedule verified on the floor.
- Liquidation and restructuring. Orderly and forced liquidation values for insolvency practitioners and free zone authorities, including removal-cost realities.
- M&A and PPA. Deal support and purchase price allocation: fair values for acquired machinery that survive the auditor's review of the opening balance sheet.
How we get to a defensible number
- Asset schedule. We start from your register — or rebuild it. Where the ledger is stale, a fixed asset verification first pass confirms what physically exists before anything is valued.
- Inspection. On-site condition assessment: age, hours, maintenance regime, installation and commissioning costs, and the obsolescence the spec sheet will not tell you.
- Approach selection. Market evidence where secondary markets exist (fleets, generic plant); depreciated replacement cost for specialised production assets; income-based reasoning where cash flows attach to the equipment. Methodology follows the classical three approaches summarised in our guide to tangible fixed asset valuation.
- Reporting. A Red Book-compliant report: basis of value, assumptions, IFRS 13 hierarchy level, valuation date and per-asset values — load-ready for your fixed asset system.
The UAE compliance backdrop
Three regimes make robust valuations more than good practice. IFRS is the reporting language of the UAE — required for listed companies and the basis on which corporate tax is computed. The 9% corporate tax regime adds transitional elections for assets owned before the first tax period, which need supportable opening values. And the FTA's record-keeping rules require the documentation behind your figures to be retained for at least five years. A valuation file from a recognised, independent valuer answers all three at once — for mainland companies and for free zone entities in DIFC, ADGM and JAFZA whose qualifying status depends on audited financial statements.
Sectors and asset classes
Manufacturing and process plants, oil & gas and energy equipment, construction and heavy fleets, healthcare technology, hospitality plant and F&B production, logistics and materials handling, data centres and IT infrastructure. Full service detail also on our machinery and equipment valuation overview; if the register itself is the weak point, start with asset tagging so every valued asset stays identifiable.
Frequently asked questions
What is a RICS Red Book valuation?
The RICS Red Book (RICS Valuation — Global Standards) sets the mandatory framework RICS members follow when producing valuations: defined bases of value, inspection and evidence requirements, independence rules and report content. A Red Book plant & machinery valuation is what banks, auditors and courts in the UAE typically ask for.
Which purposes do you value machinery and equipment for?
Financial reporting under IFRS (fair value measurement per IFRS 13, revaluations and impairment testing under IAS 16/IAS 36, right-of-use assets under IFRS 16), insurance (reinstatement and indemnity values), secured lending, liquidation and forced-sale scenarios, M&A and purchase price allocation, and dispute or arbitration support.
Do you physically inspect the assets?
Yes, wherever the engagement allows. Our valuers inspect on-site across Dubai, Abu Dhabi and the wider UAE — condition, hours/usage, maintenance history and installation costs materially change value, and desktop-only opinions miss them. Where assets are numerous we combine inspection with verification sampling.
Which valuation approaches do you use for plant and machinery?
The three classical approaches, selected per asset and purpose: the market approach (comparable transactions, dealer evidence), the cost approach (replacement cost new less physical, functional and economic obsolescence) and the income approach where cash flows attach to specific equipment. IFRS 13 hierarchy and assumptions are documented in the report.
How does valuation interact with UAE corporate tax?
Corporate tax starts from IFRS accounting profit, so revaluations, impairments and depreciation rates flow into the tax computation. The transitional rules also let businesses elect to exclude pre-regime gains on certain assets owned before the first tax period — which requires knowing what those assets were worth. A documented valuation puts numbers behind those elections and survives FTA scrutiny.
How long does a machinery valuation in Dubai take?
A single-site production facility is typically inspected in one to three days, with the draft report in two to three weeks. Multi-site or liquidation engagements are programmed to your deal or court timeline; urgent insurance and lending valuations can be fast-tracked.